Magellan Midstream Partners LP (NYSE: MMP) priced a $300 million public offering of 5.15% senior notes due Oct. 15, 2043 at 99.56% of par to yield 5.179% to maturity.
The partnership expects net proceeds of $295.6 million, after underwriting discounts and estimated offering expenses. Net proceeds will be used to repay borrowings outstanding under its revolving credit facility and for general partnership purposes, which may include capital expenditures. Pending application of the net proceeds, the partnership may make investments in interest bearing securities or accounts.
The offering is expected to close on Oct. 10 and is subject to customary closing conditions. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., and RBC Capital Markets LLC are joint book-running managers. Barclays Capital Inc., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC, and Wells Fargo Securities LLC are co-managers.
The offering may be made only by means of a prospectus supplement and accompanying base prospectus.
Magellan Midstream Partners LP is engaged in the transportation, storage, and distribution of petroleum products in the U.S. The company is headquartered in Tulsa, Okla.